Another View: Modifying mortgage interest break would be a smart first step

Now that the housing market has started to recover a little bit, more people are looking at the role tax policy might have had in the housing bubble that burst several years.

The average taxpayer gets $559 from the tax deduction for mortgage interest, according to the Tax Policy Institute Of course, the bigger your mortgage, the bigger your potential interest deduction. There is a ceiling on the size of a mortgage that qualifies for this tax subsidy, but it's absurdly high: $1.1 million. That ceiling is a limiting factor only for the highest earners, the ones who qualify to borrow that much money. For most of the housing market, there is no ceiling on the size of a mortgage that qualifies for favorable tax treatment. The Obama administration is reportedly considering a proposal to drop the mortgage interest deduction for those whose incomes are higher than $250,000. The effect on the budget deficit of that proposal would not be very significant, according to some analyses. It also wouldn't be fair. If national policy intends to support home ownership with a tax deduction, the benefit should apply to everyone. A better way to change the disproportionate mortgage-interest benefit now available to wealthy taxpayers is to limit the size of the mortgages that qualify. The current limit could be gradually reduced over a period of years to a more reasonable limit that could vary with regional housing markets. Eliminating the mortgage interest deduction would be a big bite out of tax policy, and it might not be a proposal that could generate much support, but candidates keep saying we should have a simpler tax code. Couldn't we at least take a baby step?

--Kenosha (wis.) News

Consider the source

With the Nov. 6 election nearing, it is essential that voters pay attention to the information they're getting as well as its source. It is impossible to watch television or browse the Internet without being bombarded by political ads. Propaganda is in the daily mail and chain-letter emails.Of course the political campaigns themselves are doing their part to spin the new in favor of their candidate.The point is, citizens must educate themselves and pay close attention to the information they're given, where it comes from and who stands to gain from it. The truth is hidden somewhere in the political spin and propaganda, but voters will have to be smart in seeking it.

--Ironton (Ohio) Tribune

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Another View: Modifying mortgage interest break would be a smart first step

Now that the housing market has started to recover a little bit, more people are looking at the role tax policy might have had in the housing bubble that burst several years.The average taxpayer gets